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South Scottsdale continues to be a popular spot for development in 2016, with two residential towers slated to replace vacant storefronts and a partially abandoned auto dealership along Scottsdale Road, according to plans filed with the city. The following are projects proposed for south Scottsdale. Submitted Photos/ The Republic

Former Luxor Auto Group dealership: A four-story residential complex with brownstone-style architecture is proposed for the former site of the Luxor Auto Group dealership at 3220 N. Scottsdale Road. Parker Leavitt/The Republic

Northwestern corner of Scottsdale Road and Earll Drive: A cluster of 35-year-old commercial buildings at Scottsdale Road and Earll Drive is slated for demolition to clear space for a new 77-unit apartment complex. Parker Leavitt/The Republic

L'Esperance project: A five-story residential complex proposed for the northwestern corner of Scottsdale Road and Earll Drive would include ground-floor retail space for shops or restaurants. Scottsdale Development Review

South Scottsdale continues to be a popular spot for development in 2016, with two residential towers slated to replace vacant storefronts and a partially abandoned auto dealership along Scottsdale Road, according to plans filed with the city.

L'Esperance, a five-story complex proposed for the northwestern corner of Scottsdale Road and Earll Drive, could bring 77 apartments and ground-floor retail space to a prominent corner at the southern gateway into Old Town Scottsdale.

Alta Osborn could add another 277 apartments or condos 200 feet to the north, where the four-story complex is planned to replace the former Luxor Auto Group dealership, which closed last year after the owners were arrested on money-laundering charges. Felony charges were dropped — but too late to save the business, owners said last year.

South Scottsdale is home to the city's oldest neighborhoods and was once known for its car dealerships along McDowell Road, nicknamed the "Motor Mile." Blight crept in as buildings aged and dealerships closed, but interest from investors and rising land values have created a post-recession development wave.

"Southern Scottsdale has been rediscovered," Scottsdale zoning attorney John Berry said. "It is once again becoming the heart of our community."

A touch of France

L'Esperance project: A five-story residential complex proposed for the northwestern corner of Scottsdale Road and Earll Drive would include ground-floor retail space for shops or restaurants.(Photo: Scottsdale Development Review)

Named after a restaurant and hotel in France, L'Esperance would replace several vacant retail buildings with 77 apartments and a small amount of ground-floor space for shops, said Craig Waddell, consultant for developer Yanta on Earll.

Yanta must first get City Council approval to change zoning for the property, and a vote could come later this year. If approved, the company could demolish the existing buildings in mid-2017, with a potential opening about 12 to 18 months after that, Waddell said.

Yanta on Earll is waiting for city approval of the zoning change before closing on a purchase of the property, Waddell said.

Northwestern corner of Scottsdale Road and Earll Drive: A cluster of 35-year-old commercial buildings at Scottsdale Road and Earll Drive is slated for demolition to clear space for a new 77-unit apartment complex.(Photo: Parker Leavitt/The Republic)

The $18 million project would feature underground parking, large balconies and a location within walking distance of Old Town Scottsdale and major employers like HonorHealth, which operates Scottsdale Osborn Medical Center a quarter-mile away.

L'Esperance would include an elevated indoor/outdoor pool area and street-level fitness center along Earll Drive, according to development plans filed with the city.

Rent is projected to range between $1.85 to $2.05 per square foot, Waddell said, which translates to about $1,700 monthly for one of the complex's one-bedroom, 1.5-bathroom units. Most of the apartments include a small den for potential use as a home office.

The average monthly rent for a Scottsdale apartment is about $1,128, according to Cushman & Wakefield, which is higher than the overall Phoenix-area average of $900.

Brownstone-style complex

Alta Osborn project: Wood Partners plans to build a four-story residential complex with 277 units on the site of a vacant auto dealership in south Scottsdale.(Photo: Scottsdale Development Review)

Atlanta-based Wood Partners, which has developed nine multifamily residential projects in metro Phoenix, plans to build a 277-unit complex just north of L'Esperance at 3220 N. Scottsdale Road.

Alta Osborn would feature stoops facing the street, said zoning attorney John Berry, who is representing Wood Partners. The company is seeking City Council approval to change zoning from commercial to downtown mixed-use.

The four-story project would replace the shuttered Luxor Auto Group dealership and an adjacent auto-repair shop, according to plans filed to the city. The complex would include a pool area, 7,000-square-foot clubhouse and 3,000-square-foot fitness center.

Residential units, which could be apartments or condos, range from about 650 square feet to about 1,300 square feet.

"This is removing a vacant building that's non-productive and replacing it with rooftops and high-income residents that will support downtown businesses," Berry said.

Former Luxor Auto Group dealership: A four-story residential complex with brownstone-style architecture is proposed for the former site of the Luxor Auto Group dealership at 3220 N. Scottsdale Road.(Photo: Parker Leavitt/The Republic)

New homes approved on McDowell Road

Two residential neighborhoods proposed by K. Hovnanian Homes on McDowell Road won zoning approval from the City Council on May 3, clearing the way for construction.

The developer plans to build 55 single-family homes in a community called Skye on McDowell at 6855 E. McDowell Road, a site occupied by multiple car dealerships that are relocating.

K. Hovnanian will also build 81 medium-density houses on 7 acres formerly used for the Right Toyota dealership at 6850 E. McDowell Road, which has sat vacant for years.